When a condo developer goes into bankruptcy, owners of previously sold units can be left with some troubling questions.
Here are the answers to a few of them:
· If the lender buys title to the property at the auction sale, a frequent occurrence, the law considers the lender just like it does other owners and requires that the lender pay the monthly assessment.
· The lender who buys the units also would be responsible for the taxes on the units he owns.
· A clubhouse or similar property would be jointly owned by all the owners of all units and taxed as part of the value of those units.